Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $305,000 after deducting Robert's $91,500 salary. In addition to his compensation, ABC pays Robert dividends of $213,500.
a. What is Robert's qualified business income? $305,000? (correct)
b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is 181,500?
$213500(incorrect), $91500(incorrect).
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
